I know nothing about Album, so I'll jump right in here.
Photoshop Elements 2.0 is an excellent program and will likely be all you need to enhance your photos. If you ever decide to upgrade to the full version of Photoshop, you'll be right at home.
Album creates a scrapbook of photos on your computer. PC Magazine recently rated Album the best of seven programs in the "image management software" category. Naturally, this will take up more hard disk space -- something to consider.
So your main decision is, "Do I need photo albums of my pictures?" If you do, Album seems like a good choice at a good price. Having said that, you're paying $30 for Album with the package and it's available for very little more than that later if you want to defer the purchase (it retails for US$50).